Nuvoco Vistas Corporation Downgraded to 'Sell'

Nuvoco Vistas Corporation, a midcap cement company, has recently been downgraded to 'Sell' by MarketsMOJO. This decision was based on the company's weak long-term fundamental strength, with a -30.41% CAGR growth in operating profits over the last 5 years. Additionally, the company has a high debt to EBITDA ratio of 4.51 times, indicating a low ability to service debt. Nuvoco Vistas Corporation has also reported losses, resulting in a negative return on equity.
In the latest quarter, the company's profits have fallen by -98.5%, with a debtors turnover ratio of 15.24 times, the lowest in the industry. The stock has also underperformed the market in the last year, with a return of only 3.27%, compared to the market's return of 25.12%.

On a positive note, the stock is currently in a mildly bullish range, with its MACD and KST technical factors also showing a bullish trend. With a ROCE of 3.1, the stock is currently trading at an attractive valuation, with an enterprise value to capital employed ratio of 1.3. It is also trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 3.27%, its profits have risen by 429.2%, resulting in a low PEG ratio of 0.1.

It is worth noting that Nuvoco Vistas Corporation has a high institutional holding of 23.1%, indicating that these investors have better capability and resources to analyze the company's fundamentals compared to retail investors. Overall, with its recent downgrade to 'Sell', it is advisable for investors to carefully consider their options before investing in Nuvoco Vistas Corporation.